HZO - Earnings call transcript Q2 2019

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Operator

Good morning and welcome to the MarineMax, Incorporated 2019 Fiscal Second Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brad Cohen, Investor Relations for MarineMax. Please go ahead, sir.

Brad Cohen

Thank you, operator. thank quarter. joining and MarineMax's discussion everyone second XXXX morning, you this for of Good that all but sure she that call I’m you’ve Cameron will went press of Linda you out release email the one this right XXX-XXX-XXXX, morning, at if to please received not, and a away. copy like to now team would the management of MarineMax; I introduce Mr. Mr. Brett McGill, President and Chief Executive Officer; of Mike company. Financial Officer the Chief McLamb, the quarter questions. will and be comments make Management your a available about few for then call the over Mr. And with turn that, me to let Mike McLamb. Michael?

Mike McLamb

Thank thank call. you, everyone for you and Brad. Good morning, joining this

and that like not Before tell comments differ to call I limited defined Litigation risks are turn over expectations. could ability the the grow mind, from statements over materially uncertainties These consumer share our to weather, Exchange seasonality like of factors identified with forward-looking and that to spending, by economic risks to, our Form or cause that Brett, With Commission. of call opportunities actual Act. and include, I'd Private level I'd turn on in XX-K company's impact but to conditions Securities involve Reform other the its numerous the to capitalize results certain the the other filings of These general Securities as Brett? and and you statements in market to are and

Brett McGill

shows an To trends in line in marketing, proactive cost. drove growth the that but choppy to to the in to March our quarter ability I industry industry start a data the for month by out the sales, which throughout had team's with proud us XX% growth, everybody. am to combined required top good challenges. want clearly evident you, boat morning, a of quarter and of more The is which Thank Mike, invest saying how same-store generate environment at and be and data less in I optimal its than prevailed. the in such produce sales

our margin. While the were in gross consolidated more a industry seem did aggressive, mode, to be discounting did not we impact incrementally which

Additionally, on in the quarter. Sea of larger Ray expenses and also weighed push the the last boats margin

give business additional quarter. the color some Let me in on

As we we as strength off gaining month progressed. call started boat in January, earnings shows but are said choppy, in the our

was As shows a as just and -- to choppiness shows every after what spot started the quarter were was our and it written for dollars. a up commented in the bright have at Part become stores December through This turns culprit. greater likely boats, is invest center console industry out, due strategy reflected that biggest of and and started industry is Many evident the in to industry boat in were soft. saw meaningfully point this MarineMax fishing the and about February We show data. to contracts such trend to we January. weather through was our became boats smaller data the in lower that as price aluminum March

For our trends would that us, geographic our add diversity, are I given inconsistent.

those XX that performed the remains that generally, invested outboards units in were a theme industry an saw Overall, and than well units quarter achieved. were basis. down explains also incurred quarter, strong costs the we good a feet, Larger the were on also as the our generally for We in greater industry. boats, and quarters. we increase selling is units for from work average below towards coming and growth, our was is a which in growth an top but are factor, meaning revenue as watching expectation, carefully through well did So we while trends the dollars. we trend of down and for outboards we the The in consumers news demand premium apples-to-apples unit price. products in was the producing weather our line categories growth the were our The sell, that lot in

outboard being models continue and new launch that power Our are invest very manufacturing well to partners of received.

boat quarter, drop Another Azimut, which positive costs more replacing been two note near Obviously, is each we up boat in in Galeon, Sea only in that we to Rays more larger At in Sea larger successful Ray revenue added revenue Ray first announcement other the our XXXX. integration Ray, training, in the flawlessly since To has quarters, of larger did end achieve like June carry the the brand. the brands from marketing with March additional of strategy our executed three growth completely through quarter and replacement discontinued been revenue the the have Sea growth, saw March drive invest since of has Sea a which shows, quarter. made meaningful by we the the stock. had and announcement, than and

charter continues growth again train margin and our storage our our Beyond include drove in higher in teams process, insurance, to included to operation. strategic initiative a boats, is the efforts ensure produce parts, incremental increases. This in we once key and businesses and service and to sales our that finance they’re

with same-store no that revenue, percentage proud in persevering that Ray team However in product, and them can't revenue, the Sea the almost averaged of I over the the a team the which since by MarineMax quarters, pace as shrink seen. question tireless through same-store and the margin is their sales Sea industry for our the There the our the in meaningful quarters March primarily higher despite is our the and am has three last consolidated industry, Consider discontinuing sales, choppiness which boat improvements XX% quarter, of choppiness keep want which to team I historically driven growth is was has businesses sales announcement. of Ray deflated best for a margins. with thank growth the the such strong December despite our the combined effort. portion total

consumer very related our product, sales any to growth is almost other addition relative the or In marine same-store industry strong.

quarter, aligned with margin the in business we our in pricing, reasons be doing digging and today are While operations and sure structure, above we operations cost gave the I in future. are our and our are to several expense challenges for

ahead, we have look we the inventory. right As

deliver manufacturers entering and a is loaded fresh to with enthusiastic are product, an marked Our team, by new we backlog With our largest strong design. continue historically innovative what technology and quarter.

of demand our some potential winter and All season. up unlock stores the speaking with working customers pent long to are of the from

events to sales utilize exceed customer We drive expectations. will unique MarineMax and

the the and secure right will friends. We ensure with their stores, outstanding to our customers in source service our and it for time provide product are water family enjoying and continue

the and in our more To has acquisition was and training the the the in Ski & North to team in market with it inventory, the will allows successful bringing other industry ours, consumer. which is The welcome announce great resonating growth XXXX. be XXX Doug now providing ongoing and then Center overall. two us great of Mike and the team in real that acquisition, to of the Externally, them Malone. are Texas. Rod carry which last & long the a operating our & practices, the led to great ranking recognized again we They Ski and in Sail well MarineMax comments detailed point, of in brands of icon, pursue parts effectively. history. on San Watkins Ski generally America markets Buzz business to leverage Malone. MarineMax. area, help Magazine, Sail week marinas XXXX dealers quarter. by dealers as differentiated approach late really is MarineMax dealer that XXXX were great It's while will opportunities for aligned drive Given Sail combining Sail towboat growing gains that able Having we and especially products & and access top The it's found by ask into specifically, veterans, can will best market that the the estate We see at update, With to growth, believe I in Boating share, to by drive respected best and industry that Centers more acquiring they Ski strategic and to accessories marketing. family, carry, for Austin provide with Antonio been our them to includes overall

Mike McLamb

Good Thank everyone. Brett. you, morning,

me for also they generated thank the the team growth our Let in quarter.

strong For sales the by quarter, driven XX% XX% revenue $XXX to same-store million, grew over growth.

Brett resulted choppiness the mentioned, in key several to As important the of industry in lower are sales categories in unit us. that

digits, market increase in our single data, our on, share ADP. the as our the were larger growth a by mid quarter helped we to we all growth of price. was again the large believe premium gained on and The average drive same-store Based unit quarter. down in which driven unit touched low Brett industry quarter, in the selling means in up our For product comparable sales in sales

decline due was margins Our gross revenue. margin roughly to and margins was up XXX points. The in to of half rest mix the due product basis

in mix, increased than Specifically businesses, carry lower a higher consolidated margins. which sales, boat impacted our to margin margin regards

of about in both Sea lower of the products decline, carry Selling, This expenses out Ray margin half incrementally product, also a we pickup which saw million. the and product product. up general But a used were quarter and administrative to directly product larger traditionally $XX related was sell. margin in other larger than

of year-over-year increase larger ability deposit additional partly to no timing Beach, charter as took in is I customer a contributed a the last coupled this data, quarter, our increased and The any to in with moved proactive shows, quarter. $X opposed show explains Irma. given the added our year sales efforts. the is strong the mentioned show in lack would of to shows, As of the resulted to and with Brett hitting quarter, costs the show in approach March, leverage the I last operational and upwards which business boat of the add about March Also costs our of revenue. line. recognize try the The Hurricane shut down choppy of one This stimulate fully quarter Palm very to XXX% expense our discussed, as that improving we late million increase. to promotional year, in increasingly due virtually

this was year-over-year budgeted expected, and did this While impact the expenses. incrementally

For levels. interest from due additional slightly the borrowings increased inventory quarter, to expense

million earnings Our million to last $X.X compared $X.X year. were pre-tax

adjusted $X.XX compared an year. diluted net income earnings last of was Our million $X.XX $X.X per with to share

to But of in Turning we form at sheet cash. unlevered end, substantial have quarter as had $XX million inventory. we about a balance reminder, our the cash in

mix season. $XXX summer at with into our Our end busy the to and as X% which inventory were line in quarter same-store aging sales is head inventory of we selling levels year-to-date up The growth. million, healthy is our

sales, near-term liabilities, year. cash deposits be or to of due from position. not, were whether our million to short-term deposits because involved about $XXX size the were lumpy can enhanced a of at to down they up Customer our the is slightly due liquidity our best XX% last Looking and not borrowings were and predictor trade

mentioned, we've the strength the this timing Beach of Palm product boat larger show and contributed growth. As to

was X.XX balance outstanding Our are these at current total ratio sheet metrics. net and liabilities X.XX. stands Both of tangible worth our ratio

Our we have debt. no $XXX tangible new our own which net worth per again share. marked debt $XX.XX locations million additional or half long-term of of and are We all a about record free,

Our strategic opportunities balance that sheet on to a arise. has allows they as capitalize advantage us formable

Let now guidance. discuss me our annual

the believe align is company in challenges it and the the Given the we expectations. quarter, seen March by to prudent industry

to are guidance to As share per $X.XX to fiscal such, adjusting XXXX $X.XX. $X.XX earnings from $X.XX we

solid that account into of $X.XX the & in to a of add earnings stacked $X.XX and XX% Sail in few $XX takes XX% approximately same-store and about in next its million Ski guidance sales are we roughly factors revenue per up against over quarters growth share. should Our X-year annual

or basis. X% prudent Our improve on is grow categories. trends if going for same-store an guidance we this if assumes see now choppiness our will the continues key until We forward annual believe sales industry to X%

a as reminder, the of the front is Additionally, tougher than XXXX overall half. back an half comparison

our target, Our the leverage leverage guidance does so far so digits. in single in at assume the we half mid-to-high levels second not revised this been year has

of account and rate the It share XX.X of acquisitions Our may also uses diluted an XX% shares. guidance a complete. we tax expected other from XXXX million around uses potential impact excludes

roughly units. dollars sales With do for go As backlog. April, in positive and to week have we Brett current strong same-store to trends, mentioned a in we’ve expect a

call of However, it months successfully results June. those to the over Brett produce I comments. and May -- we closing some will With to comments, Brett? meaningful need similar turn more over in back back for

Brett McGill

you, Thank Mike.

of As our the into as fiscal hard we move half is improve and forward, to at year. team our motivated we second work the move performance

the initiatives better evaluate as beyond execution Texas. improve and to the strategy also Internally, expansion we’ve opportunities acting on for to continue recent throughout are spoken will increase We long-term customer that, approach already business to with digital many questions. enthusiasts of of reach meeting operator, higher leverage alignment our the the best of to and efficiency, differentiated call pursue Boating including of and continue is call, And we for grow the is our our in for the the open-up the our needs to the the expand aspirational [ph]. choice great a margin ensures let's expenses businesses. boating activity MarineMax

Operator

Greg Thank first Badishkanian And you. to Instructions] with Citi. will [Operator we go

Frederick Wightman

activities. competitors in are Hey, in actually Greg. for Fred a margin It's morning. guys. laying looks bit than in look the terms promo quarter, If like on little earlier Good at your just some you performance Wightman we of of the it

competitive about people aggressive far in more promotion? can you talk just seeing you industry the are getting as So any response if as

Brett McGill

think sales. to were aggressive we market drive with to we said, going I as the

we So, out. know don't I if looked really

different We and heavy but looking real noticed throughout yet, -- we lot we haven't but and the events spread shows it a promotions just are with we haven't seen pricing, our discounting at. of aggressive were

Mike McLamb

call pricing drastic wasn't seem not very the it as did environment it is incremental, it, our And Fred. like a for

Frederick Wightman

think That what Okay. that at and the back quarters, the weather And makes last driving which called you can if sort slowdown? here do mean, out step quarter, of then, performance I but sense, some industry take is sense. industry look you’ve soft this the you level in in seen two a makes

Brett McGill

I always we kind factor seeing in great come smaller our and there. we as that is that are caution have kind of that say to cadence. that sell reports -- that the premium think kind a out products months the the all some we look that or of of and these quarters continue at it's are looking weather it, of But at just

booked -- out with events our things. fully to are customers, events, Our people these coming

smaller So we we see sure are on good more product. -- not value-oriented [indiscernible] the maybe are but things, we that,

Mike McLamb

weather Brett's I believe was the -- factors of people the political stuff markets choppiness, all think point, turmoil on back due to going that all related. more to a then in most that people Fred tariffs are that quarter the then. December And all reports, and lot say, and was the the

our see terms a was -- in guidance we are reflects of just how little we until are We being it. -- our cautionary it into get season

Frederick Wightman

impacts sense. you at point makes at cancellation? just finally, And That assume then mean, versus I any this typically guys this in really deferrals the weather-related do point that are year,

Mike McLamb

Historically, no, we said it.

Brett McGill

yes. Yes,

Mike McLamb

early of to in way the miss bad weather the the season. season. It through all June, the It's really end takes

Frederick Wightman

lot. sense. a Makes Thanks

Brett McGill

Thanks, Fred.

Operator

Altobello And James. Raymond next we will with go Joe to

Joseph Altobello

talk Great. I Thanks, start was to I morning. weather, will guys. this Good there. already guess [indiscernible] about

margins You Southern difference weather it wasn't noticeable of and an earning your there between probably far the markets? did issue, put comps you markets in weather mention look the this at was quarter, some company, so that a impacted season. your and we I’m Northern curious, if up But your for where

Mike McLamb

the same like kind the looks June, I it doing. others meaningful say And we and May when mixed. will of we data get of had it's how his think, to to hesitation, a tell I is, remarks, It's industry Joe, you how Obviously, but inconsistent, have dealers and more to Brett we would watch in are the is are thing. which industry, April, also to a which say see it's good prepared it's and the see us they let's the phrase causes I April talk into little in what bit causes of think I inconsistent. going months that

of the So weather, are out at all I get let's here. something happening looking the and really think more it's while a, what's we into season see

Joseph Altobello

guess, Okay. on you And had the then basis, an right? it in terms of back I if XX%, the guidance, down acquisition started brought organic home.

is that. boat right? of imagine, Sea boats left no have show winding I couple baked just to So, understand a into there impact to is what’s season additional You down. want -- Ray,

go probably So last advertising forward? kind interested would come for do guess, from the down some investments Do to or It related they mix what levels as in half? you elevated I and negative imagine well. piece includes the should of the forward going those in generally going marketing And away. marketing QX I are impact those be stay second

Mike McLamb

our you continue the it how that, are at say, we don't our per happy if do would listen at promotional. will the imply see, back are on If going be sitting into I as and looking that then need and up higher into about weather, we all activities. mid a we to But leverage we that's it using you it's maybe So which go share we Until summertime. as should March, will to Joe, ramp leverage, a bit that data, very would we and said, and the earnings what back guidance promotional to be get high somewhat bit to tell less-than-optimal up, leverage to to single-digit, margins, is the we that let's little calculated. little get we ramp the here on ended

Brett McGill

it Sea the our in I them in continuing product, family keep and enormous moving products effort. working yet to product, put think does And other the customers take Ray we through carry, an but the

the on Ray. we into it's to historically that away it's customers other marketing about get inventory, So products them not just getting getting move Sea events They and with carry. about these and these lost

Joseph Altobello

Okay.

much quarter? cost in the you Beach Just did Palm lastly, how

Mike McLamb

I to front that sure the be me, I’m closer don’t million. of got they rate but in $X.X have to

Joseph Altobello

guys. Thanks, Okay.

Operator

Wold Eric to the with FBR. go will we on, Riley Moving B.

Eric Wold

A morning. questions. of Thanks. Good couple

to the to kind kind promoting start quarter. going of heavier back one, in the decision of Just

to more was of drove may drive of standpoint. lower of you competitive you from You or hit impedance product, kind a weren't see margin what decision seeing it sales say the earlier started obviously that really What kind taken I don't initially What from a the competition? on. kind but than

Brett McGill

I think data would heavier guess, shows I the maybe shows we pedal shows. keep we the put the it. at it. on growing, And showrooms, results activity saw And the us from we of I boat we was the in it say, boat weren't these let's our say, think I in are at quarter know December -- that thought, kind let's obviously, boat good choppy, extremely you caused so the so we on said we seeing and had put to

Eric Wold

-- your can pressured sense from that then, I on what's And heard kind level for weather lastly, comments do of lower-priced store sole Maybe maybe well. boat income could you little that, you etcetera. around the somewhat of hear the of driving in there, Okay. that decision of weather Obviously, lower buy I boats. being [indiscernible] by wanted kind on more kind being a a the pushed lot not done? maybe more boat? impacting, terms to you’ve get is to from part is like seems a what bit or show your to that of back season waiting customers guess, guys those it something you be a dealer, impact be the really making delay we’ve purchases a being lower impulse the I weather and guess, priced around, taxes

Brett McGill

weather we not, weather. of or trends weather, there's kind yes, that Yes, saw there reported industry like on because was inconsistencies just So just that say, saw I -- say the couldn't of data just something it said, there, was think could we we we like was we

what there, sure is. is something out that So there are not else we

Mike McLamb

The the are to seems boat are customers one hearing concerns looking are causing not of a It's you hearing lifestyle, we for we that Eric, about here enjoy boating are talking the to customers. is some from. not from be the issue. what

Eric Wold

guys. you, it. Got Thank

Brett McGill

Eric. Thanks,

Mike McLamb

Thank you.

Operator

Next, we with Swartz will SunTrust. go to Michael

Michael Swartz

good Hey, guys. morning,

Brett McGill

morning. Good

Michael Swartz

pass-through that maybe on at in smaller fiberglass to sense for you some maybe demand slowdown what’s and little driving or mean, wanted have is softness bit? the material raw demand margin dent Just maybe or aluminum in that there just the price of question product. increases, general, follow-up last about a some to starting the of I are maybe Eric's any the

Brett McGill

buying we as that just boat. in the a to -- could we reasons exactly I show the in think we don't the boat didn't know I -- it see our this heavily that. speak quite in all past. here are traffic, We shows had if buyers was maybe is it's not

Mike McLamb

I mean has bring greater not. price across you whether it's that's up year increases lower any boats but recent probably clearly, had the think though. points board I price a a than good this year, or point,

as I just will to think and it's to what I inconclusive, us be but Mike. sensitive the industry guess, possible, all need of I as say,

Michael Swartz

half about decline basis I would of in Okay. margin -- And That’s I just clearing product which points work the decline decline came said, of or from the fine. Ray XX just on margins, out you think out product in Sea half Mike, product. larger to think gross year-over-year some -- of that the to

people just boats, trying facing that that entirely whatever? the cost I’m get and to like the or into understand, some maybe is to or and the just I I’m customer this, pricing trying initiatives to the of Azimut get promotion other due maybe lots, education related was off it Galeon misunderstanding but embedding to also guess, So, to or

Mike McLamb

my training holding the Great down specific dropped. SG&A. the December until question. but margin about were the we this comments All down doing, promoting all point that’s quarter, our are December perspective. quarter, margin for definitely the Brett selling a quarter. that to that own after from They in were comment some, and But they we Sea the that thanks the clarifying Rays from final was and Up we decline the had made

margin is the XX Ray specific to larger the points Sea basis decline So product. just

Michael Swartz

one maybe would Sea XX now you impact that larger are basis zero kind as point to theoretically Rays, of or So away? down go of

Mike McLamb

That’s correct.

Michael Swartz

Okay, perfect. Thank you.

Operator

Wedbush Securities. James We with will hear next from Hardiman

James Hardiman

call. good for morning. Thanks Hey, my taking

same-store I’m sales mean, what were better, least the modeling. So we were than clear. I to want sure at The -- I make just

tough than mean The is you sure better that make expectation. it were Street. fell I obviously, they they saying just But to sounds was what properly. like I that it are short of think your we during pretty the were want given I maybe half sales a understand about should of I same-store back we like year? of anyway second And think in it the just here that sort off, phasing quarter. then comparison the maybe seems that of

Mike McLamb

Yes, I comment to we that the did. will shows January be the We thought success putting even can there and and looking the bigger than biggest we sitting business the of pedal March, up of metal, having a able a there we are than but at us did. more the we with team we drive decent boat as a to March February -- about is begin, to month March we drive ended a thought we will

comment of think even but front XX% be was So memory XXXX, And half going sales, at growth. your how growth, quarter right, year than that’s if the the now, and it on from I bigger memory comment the is that was. back 'XX, my averaged half thought we the this look is you X% same-store in on if

just comparison So X-year we a simply are up basis. a tougher on against

the tougher can we’ve granted, some trends, through sales X% and same-store X-year same-store at sales trends back half were But trend. is the looking sales same-store erratic a of was comparison March. than at half You 'XX and X-year front fairly start

Brett McGill

on bigger especially the And products. between of very be the timing can boats difficult, quarters

can timing critical. some the we events -- see is and but of we big it's see things, backlog different So

James Hardiman

optimize earnings quarter quarter, taking utilization these play going even bigger might in top it a question crop kind other benefits is considerations the about where does didn’t picture that just issues power, to that a Maybe in maybe continue maximize is -- strategy, or there to hurt on, any goal then ultimately. promotional like, margin And dollars, are to market that of or I pretty know there are a up? in quarter that Great. line strategy of here? share if but seem any given of the the earnings

Brett McGill

other we single transition take each to to to factor for pressures. will have and have the in at eye as is from to Obviously, progresses, us product, them you decisions you competitive day we but just customers every take inventory measure that of inventory a it. levels months drive We and always you through Rays to bought different that trades. on our direction. and to work that you’ve Like say, levels, all from business look maybe years Sea the pressures, we have I everything now and those make competitive There earnings, got an

Mike McLamb

ends planting we get would rather earning certainly cycle market for our given streams and take boats share, And always several future growth over of how customer and life customers a ultimately up seeds future even.

have for And again were team is there did did. day -- all we always your inventory So than we the foot even that. every put business, we to trying always create do you years. the think got all we there, as trying management, out tended of to we you as went into James, -- And to balance lean in the are that over got of almost manufacturers, to way, business we’ve you March, And coming more because seasonal to your to orders best our business. going forward out

is April that and in delayed but some May, And lot of play. into perhaps in be coming going of there's to come factors a that

James Hardiman

But the step was the to would about you business be of you sort way That’s think the support? have March promotional decided thinking after that? up to just clear, in March more -- to the

Mike McLamb

were March, promotional then exactly. And also in we

James Hardiman

saying, That’s Right. yes. I'm

initially the that than wasn't it in provided, -- worse even quarter the expected. necessarily to came you that wasn't given But that promotional had do better? you support So you would expected have

Brett McGill

the the that having very March. Beach shows, of we we end the our Palm did which were to addition with the in these dollars That momentum yes. throughout right at strategy Well, -- was same seeing in promotional show, same have

it show. So we was thought a good

Mike McLamb

Right.

James Hardiman

in you got quarter. double-digit the sales the that benefit How guidance? going factoring about that that should price just lastly, average How into Got a are It. then same-store And Is think we sustainable? selling you forward? remotely

Mike McLamb

Yes.

-- The XXXX, year back low half that for of back far the negative. gets to is it guidance in the our isn't digits. quarter, outlook was as for closer single in calendar the So is March the where the assume would the as it that industry which

rest of growth would increase. a there average be our normalized the more so And selling unit price

James Hardiman

Got it. Very Thanks, guys. helpful.

Brett McGill

James. Thanks,

Operator

on Northcoast Rolle Research. Brandon will to Moving go we with

Brandon Rolle

quick I dynamic. used on Hi. the had a new versus just question

current to in quarter. it You this channel? versus new Could said up about now the started in see right you sales used for pick boat used you talk inventories

Mike McLamb

come been tell I boats think -- generally saw are to model-used I channel, late improving. the they've you, hard by. in would are And I on used margins

As our far good used. inventory, of mix in in of as terms shape versus we are new the

Brett McGill

Yes.

Brandon Rolle

Okay.

you. Thank Okay.

Mike McLamb

Thanks, Brett.

Operator

question Research. David final Longbow from Our MacGregor come with will

David MacGregor

good Yes, morning.

to camp used up on year-over-year? what for the a used Just boats moment, boats were

Mike McLamb

in the us For March quarter?

David MacGregor

you, For yes.

Mike McLamb

the me, exact in have of don’t I front David. percentage

commented why they I call when think -- used a grow is that our added And overall on the which like when impact mixed we growth. has that on boats are margin, greater because incremental there I is consolidated margins, lower it up.

David MacGregor

Right.

Okay. the that mix ASPs, increases number? Then how versus in about on double-digit we sticker do think just benefit growth,

Mike McLamb

content larger product. There the has place mix in are it bulk of that’s been is but we this obviously product there and It's increases premium the just all almost on selling benefit. year, because

David MacGregor

Okay, Thanks much. great. very

Mike McLamb

Thanks.

Brett McGill

welcome. You’re

Operator

over back comments. it turn will McGill closing for to I And Mr.

Brett McGill

right. you. joining. all you All Thank Thank for

to the boating. get some summer available I are all day water enjoy today. Mike the able we are approaching, hope on you With out and and Both

the on questions. updating progress next to out reach our any forward look We call. with anytime on So please you

Operator

And that to would their everyone today’s conclude for participation. We does like thank conference.

now may disconnect. You

MarineMax (HZO) 26 Apr 192019 Q2 Earnings call transcript